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Retail Supplier Removes "Peace of Mind" From Marketing Material Under Assurance of Voluntary Compliance Accepted By Regulator

October 28, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Active Energy Inc. and Active Energy Corp. have agreed to make changes to their marketing materials, including removing the phrase "peace of mind" in describing a product, under an Assurance of Voluntary Compliance accepted by the Ontario Energy Board

According to an Assurance of Voluntary Compliance, promotional materials used by Active Energy contained on handheld tablets used during the sales process stated that, upon entering into Active Energy's "$99 Whole Home Energy Bundle" contract, the consumer will have "peace of mind", "price protection", and have "no need to worry about...prices fluctuating, or how much energy you use from one month to the next".

According to an Assurance of Voluntary Compliance, "These statements are not accompanied by a disclaimer (or any other indication) advising the consumer that the contract's terms and conditions contain limitations or exceptions to the contrary, including the fact that: (i) there is an annual usage threshold that, if exceeded, could result in a unilateral price adjustment by Active Energy for the remainder of the contract; and (ii) Active Energy may unilaterally cancel the contract for a variety of reasons."

The Assurance of Voluntary Compliance states that such iPad promotional materials quoted above contain false or misleading statements contrary to applicable statute and regulations.

The Assurance of Voluntary Compliance also states that Active Energy failed to provide the amount for the global adjustment (for electricity) and transportation charge (for gas) and also used an incorrect version of the required price comparison chart in some instances.

Active Energy has taken corrective measures under the Assurance of Voluntary Compliance, including removing from its promotional and marketing materials the terms "peace of mind" and "price protection" and all statements that suggest to consumers that they do not have to worry about how much energy they use from one month to the next, or, in the alternative, revising all of its promotional and marketing materials to include a prominent disclaimer, in plain language, alongside any of its product offerings that state such terms as "peace of mind" and "price protection" or that indicate the consumer does not have to worry about how much energy the consumer uses from one month to the next when, in fact, the terms and conditions of such product offering contain limitations or exceptions that provide otherwise

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